Bushfire Support For Small Businesses

Prime Minister Scott Morrison announced a package of relief benefits for small businesses impacted by the recent bushfires.

The package includes grant funding, concessional loans, tax relief and a dedicated contact point to help access the support. There are also financial counselling services that target small and family business owners to help them deal with the emotional and financial challenges ahead.

Grants: Top-up grants to eligible small businesses and non-profit organisations will be available under the Disaster Recovery Funding Arrangements. This program is uncapped and means that businesses and organisations that have sustained damage as a result of the fires can access up to $50,000 in grant funding (tax free).

Concessional Loans of up to $500,000 will be offered for businesses that have suffered significant asset loss or a significant loss of revenue. The loan would be for up to 10 years and used for the purposes of restoring or replacing damaged assets and for working capital. The loans will be available with a repayment holiday of up to two years, with no interest accruing during this period. The subsequent interest rate would be set at 50 per cent of the ten-year Commonwealth Government bond rate (currently around 0.6%).

Financial Support Line - The Government has pledged to establish the Small Business Bushfire Financial Support Line to provide information on the assistance and support available to small businesses in bushfire affected regions. You can contact them on 13 28 46 for assistance.

Tourism Recovery Package

The Government has pledged $76 million towards a tourism recovery package to protect jobs, small businesses and local economies affected by the bushfires. The Government's initial tourism recovery package includes $20 million for a nationally coordinated domestic marketing initiative and $25 million for a global marketing campaign to drive international visitors.

• A further $10 million will be provided for a regional tourism events initiative across bushfire affected areas
• $9.5 million for an international media and travel trade hosting initiative
• $6.5 million to support tourism business' attendance at the largest annual tourism trade event, the Australian Tourism Exchange, and
• $5 million for our diplomatic network to educate that our tourism, international education and export sectors are open for business.

Disaster Recovery Allowance

The Department of Human Services is providing support for people who have lost income as a direct result of the bushfires in New South Wales, Eastern Queensland, South Australia and Victoria through the Disaster Recovery Allowance.

The Disaster Recovery Allowance is a short-term payment to help you if a declared disaster directly affects your income. You can get it for a maximum of 13 weeks. It’s payable from the date you lose income as a direct result of the bushfires. The maximum payment rate is the equivalent of Newstart or Youth Allowance, based on your circumstances. Your rate of payment will be affected by your income prior to and following the disaster.

Disaster Recovery Payment

The Department of Human Services is providing support for people adversely affected by the bushfires in New South Wales, Eastern Queensland, South Australia and Victoria through the Australian Government Disaster Recovery Payment.

The Australian Government Disaster Recovery Payment is a one-off payment to help you if a declared disaster significantly affects you. It’s not for minor damage or inconvenience.

You can choose to get this payment in 2 instalments if you prefer. If you’re eligible you will get $1,000 per adult and $400 for each child younger than 16.

Emergency Bushfire Support for Primary Producers

The Australian Government has committed $100 million in emergency grants for primary producers. Up to $75,000 is available to farmers, fishers and foresters. This is to cover costs for immediate and emergency needs not covered by existing insurance policies.

State Government Bushfire Tax Relief Measures

The Victorian, South Australian and New South Wales governments have announced a range of tax relief measures for individuals and businesses directly affected by bushfires. The measures commence immediately. 

These measures include:

• Stamp Duty relief for the purchase of replacement homes and motor vehicles,
• Land Tax relief for land in affected areas, and
• Payroll Tax relief for employers located in affected areas or whose employees are involved in bushfire-fighting efforts.    

If you have been affected by the bushfires, please contact us for assistance in determining what relief from State taxes may be available.

This article forms part of our Business Accelerator Magazine. Download the latest edition HERE or browse other articles from this edition below:

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• Thinking of Selling Your Business?
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